2011 Annual Report - National Gallery of Art

62 NOTES
The following table summarizes the purpose of the net asset restrictions during the years ended September 30, 2011 and 2010:
TEMPORARILY PERMANENTLY 2011 2010
UNRESTRICTED RESTRICTED RESTRICTED TOTAL TOTAL
Acquisition of art $ 31,800 $ 25,966 $ 72,737 $ 130,503 $ 129,692
Collections (4,330) 6,388 34,226 36,284 37,761
Special exhibitions 12,321 11,658 31,402 55,381 53,573
Education and public programs 11,723 34,107 81,924 127,754 131,579
Editorial and photography 12,468 539 3,498 16,505 19,120
Capital projects 15,764 – – 15,764 16,050
Operations 66,653 34,551 140,550 241,754 249,020
Subtotal private funds 146,399 113,209 364,337 623,945 636,795
Special exhibitions and renovation funds – 69,732 – 69,732 56,905
Subtotal federal funds – 69,732 – 69,732 56,905
Subtotal net assets subject to restrictions 146,399 182,941 364,337 693,677 693,700
Fixed assets, net 223,248 – – 223,248 197,075
Future funded federal expenses recognized (33,402) – – (33,402) (32,895)
Subtotal net assets not subject to restrictions 189,846 – – 189,846 164,180
Net assets as of September 30 $ 336,245 $ 182,941 $ 364,337 $ 883,523 $ 857,880
14. Employee benefits
Total pension expense recognized in the Gallery’s financial statements was $7,319 and $7,035 for the years ended September 30, 2011
and 2010, respectively. These amounts do not include pension expense financed by OPM and imputed to the Gallery of $2,730 and
$3,153 respectively. To the extent that Gallery employees are covered by the thrift savings component of FERS, the Gallery’s payments
to the plan are recorded as operating expenses. The Gallery’s costs associated with the thrift savings component of FERS for the years
ended September 30, 2011 and 2010, were $2,276 and $2,214, respectively.
In addition, the Gallery makes matching contributions for all employees who are eligible for current health and life insurance
benefits. The Gallery’s contributions for active employees are recognized as operating expenses. During fiscal years 2011 and 2010,
the Gallery contributed $5,472 and $5,159, respectively. Using the cost factors supplied by OPM, the Gallery has not recognized
as an expense in its financial statements the future cost of post-retirement health benefits and life insurance for its employees. These
costs amounted to approximately $ 6,077 and $6,071 during fiscal years 2011 and 2010 respectively, and are financed by OPM and
imputed to the Gallery.
The Gallery has a commitment to certain key employees whereby the Gallery will pay those employees a specified amount at a
future point in time. The cost of these benefits is accrued over the key employees’ future years of service to the Gallery. The cost of
these benefits for fiscal years 2011 and 2010 total $303 and $387, respectively, and is recognized as an expense in the statement of
activities and as a liability included in accounts payable and accrued expenses in the accompanying statement of financial position.
15. Income taxes
The Gallery is a nonprofit organization exempt from federal income taxes under the provisions of Section 501(c)(3) of the
Internal Revenue Code.
ASC Topic 740-10-25, “Income Taxes Recognition” requires that a tax position be recognized or derecognized based on a morelikely-than-not
threshold. This applies to positions taken or expected to be taken in a tax return. The Gallery does not believe
its financial statements include any uncertain tax positions.